Today marked the first day in a while where I managed to turn a profit again. While the P&L is definitely something to celebrate, I still made several mistakes that cost me potential gains. Reflecting on these mistakes, I realize they were largely driven by a fear of losing money. This fear led to entering trades too late and exiting profitable trades too late, which significantly reduced my overall profits. I believe I could have achieved around $4,500 today if not for these errors. That said, no day of trading is ever perfect.
Today’s primary trades revolved around a major breakout through key resistance levels, as seen in the chart below. The dark blue zones were generated by my indicator, but in this instance, they proved inaccurate. This was a flaw I hadn’t encountered before, likely because I haven’t traded many major breakouts while relying on these indicators. Interestingly, the light blue horizontal zone, which I drew by hand before the move began, proved much more reliable. This reinforced the value of sticking to the basics—my intuition in setting support levels can be highly effective.
My first trade was a short position taken near the top of the initial breakout, targeting my hand-drawn support zone. Unfortunately, I got greedy, hoping for a larger move down, which didn’t materialize. What was initially a potential $1,500 profit dwindled to $800 as the price rebounded. Attempting to correct this mistake, I entered a few quick trades that collectively lost $600, leaving me with only $200 in P&L at that point.
After recentering myself and appreciating the $200 P&L I had secured, I entered a long position during the first large green candle of the next upward move. My entry was far from perfect—I got in halfway through the candle instead of near the dotted line at my hand-drawn support zone. This imperfect entry left me without an ideal spot to set my stop loss, making the trade a stressful one. Nevertheless, I stayed patient and let the trade play out.
In the end, the trade worked perfectly, netting me a solid $3,100. I followed this with one more small trade, bringing my total P&L for the day to $3,350. Although I exited the final trade a bit early and missed an additional $700 in potential gains, I’m content with the decision. The price eventually reversed, so capturing what I did feels like a win.
Key Takeaways
- Trust the basics: The accuracy of my hand-drawn levels versus the indicator zones highlights the importance of trusting my instincts and sticking to the fundamentals.
- Avoid greed: My first trade could have been much more profitable had I followed my plan and taken profits at the target support level.
- Stay composed under pressure: My entry on the second trade wasn’t ideal, but staying calm and letting the trade play out rewarded me in the end.
By trading 2 contracts, I was able to capitalize on the day’s opportunities and end with a respectable profit. Around the $21,626 level, price consolidation signaled my exit.
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